Company Administrations in Warwickshire, the Midlands
Are you searching for specialist insolvency firms that can assist with Company Administrations in Rugby, Warwickshire or the Midlands generally? Bridge Newland Limited are fully qualified experts in all forms of company administrations and would be happy to help. Below you will find a summary of the administration services offered. However, feel free to contact us for more details:-
What are Company Administrations?
Company Administrations (or Administration Order/Admin) is a court order confirming that a Company is insolvent either upon the application of the Directors, the Company (the shareholders), the Court, or a Qualifying Floating Chargeholder (“QFC”).
The purpose of Company Administrations is to achieve one of 3 objectives, these are:-
- Rescue the Company as a Going concern or
- Achieve a better result for the unsecured creditors than if the Company were wound up (put into Liquidation) or
- Realise property to enable a distribution to one or more secured or preferential creditors.
The Administration process is often used for companies with assets of a higher value as, due to the procedure, sales of these assets can often be completed quickly and can include additional realisations, such as Goodwill, that would be unlikely to be sold in other processes.
What is the Process for Putting my Company into Administration?
The mechanics of getting the company into administration vary according to numerous factors, but the principle is the same: the company obtains protection from creditors, who are prevented from instituting or continuing any legal action without the consent of the Administrator. This provides essential breathing space from creditors who are jeopardising the company’s survival by threatening winding up petitions. Once the Administrator is appointed, either by the company itself, its directors, or by the bank, he has 8 weeks to issue creditors with his administration strategy (the ‘proposals’).
Most commonly, the Administrator will seek to affect a sale of the business as a going concern to a new company, which may or may not be run by the same directors. The new company has no debts and can take over the business seamlessly, with employees transferring under TUPE. The liabilities remain with the old company, and the Administrator distributes the proceeds of the sale, after costs, to the old company’s creditors.
The Main Advantages of Company Administrations are…
- It can be a very quick process and therefore this aids the logistics of completing a sale of the business & assets.
- It is a court driven process and therefore the court offers protection to insolvent Companies from creditors either commencing or continuing with any legal actions, this is called a moratorium.
- Unless the Administrator or the court provide consent, the moratorium is likely to stop all actions, such as landlord distraint, repossessions by financiers, walking possessions and bailiff enforcement.
- The process allows for more business sales (particularly more on a going concern basis) usually meaning higher realisations, more employee jobs saved and better returns to creditors.
- The Company Directors are not required to attend the meeting of creditors although this meeting must be at a location convenient to creditors therefore if you are based in the Midlands it is likely to be at our Midlands office in Rugby, Warwickshire, ( near Coventry )
The Main Disadvantages Company Administrations are…
- The cost can be greater given the level of works required to obtain appointment, complete on sales and file all documents required by the court & Registrar.
- The Directors of the insolvent company have no control over the Company once in Administration.
- If there are charge holders then notice of your intention to appoint an Administrator must be given to the charge holder plus a request for their consent. Charge holders may object to the Administrator’s appointment and this notice/consent process can also cause delays.
Company Administrations, Rugby, Warwickshire, Midlands
Bridge Newland Limited are one of the leading providers of company administrations in the Midlands of Pre-Packs and have fast become experts when it comes to completing a pre-packaged sale of a business through Company Administrations. If you feel that you need further advice regarding our Company Pre Pack Administration services please contact our Midlands office based in Rugby, Warwickshire ( near Coventry ) on 01788 544 544 for further assistance.